Azerbaijani Central Bank Takes Action To Meet Growing Demand At Currency Auction
Date
2/14/2024 5:13:48 AM
(MENAFN- Trend News Agency) BAKU, Azerbaijan, February 14. The increased
demand for currency at recent auctions in Azerbaijan is of seasonal
nature, the Central bank of Azerbaijan (CBA) told Trend .
“This is mainly due to the implementation of a number of
government projects and import demand from the private sector
(including food and agricultural products). For example, supply has
exceeded demand in 55 percent of currency auctions held since the
beginning of this year. In general, the currency market operates in
a balance of payments surplus. The current account is also expected
to have a surplus by the end of 2024 if these trends continue," the
CBA said.
To note, the CBA held the next currency auction on February
13.
The CBA data showed that demand at the auction amounted to
$151.1 million (up 146.09 percent, or $89.7 million, from the
previous auction), which was fully met.
The weighted average exchange rate after the sale was 1.7 AZN
per USD.
Since the beginning of the year, $788 million has been purchased
through currency auctions. The auction on February 13, 2024, saw a
maximum demand for foreign currency of $151.41 million. In January
2024, $417.1 million was purchased at currency auctions.
Meanwhile, $3.8 billion was acquired at currency auctions in
2023.
The CBA started conducting foreign exchange auctions through the
unilateral sale of foreign currency on competitive terms in the
middle of January 2017.
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